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Multi-currency and creating a global accounting platform

Posted 2 years ago in Xero news by Bhavika Thakkar
Posted by Bhavika Thakkar
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Sleeter Report’s Greg Lam recently complimented us on our implementation on multi-currency. We’re thrilled Greg noticed. We believe that your accounting solution needs to be global. Opportunities are no longer limited by borders.

To function well in a global marketplace, accountants and bookkeepers need resources. Real-time exchange rates help to understand currency exposure risks for fast, informed, decision making. They need tools that span the financial landscape – as it stands right now.

Small businesses are going global

Small businesses are taking advantage of technology to expand globally, accessing new markets to grow revenue.

Xero recognizes the importance of building a core platform that is ready for a rapidly changing world.

But that is just the beginning. The reach of the web, coupled with the power of e-commerce, has meant accounting platforms need to be global. Especially with millions of small businesses now servicing customers all over the world.

Technology has enabled small business to operate at scale across multiple regions. But the shrinking world has brought its own set of challenges. This includes managing multiple currencies and rate changes.

Making Xero global from day one

It’s something we realized more than six years ago, when we developed multi-currency functionality in Xero. We’d used desktop accounting software that implemented multi-currency poorly and didn’t want to repeat the experience. We wanted to ensure we did it right by modelling currency at the core journal layer and taking advantage of the cloud. Because we did it right, we could calculate and display real-time gains and losses on-the-fly. And we can do it in both the Profit & Loss and Balance Sheet. Something even large-scale Enterprise ERP software doesn’t do.

Here’s what Greg had to say on our multi-currency function:

“At this moment, the only online accounting software that I’ve reviewed that has a fully functional multi-currency implementation is Xero. With Xero, everything just seems to work and I haven’t found myself needing to compromise—whether in regard to any functionality, on making adjustments, or on doing workarounds.”

Old systems slow things down.

Before Xero, accounting for exchange rates was a complex for both small businesses and accountants. Spreadsheets and calculators were a necessity to get things right.

Accounting systems have tried to cater for multi-currency needs. But this has always been challenging. Information doesn’t often – or easily – get updated.

Using old data on exchange rate movements meant business decisions based on performance were hard to make. And compliance costs, to get it all right, were high.

Xero delivers multi-currency for the global market

But that’s all changed. Xero has been designed to cater for global markets. We have an in-depth understanding of small business needs when it comes to accessing currency data. We also enable small businesses to know how that data affects their financial position.

Xero gives you real-time information. We pull in hourly exchange rates on-the-fly so businesses and their advisors can make decisions.

We understand each small business is different and requires platforms that are flexible enough to work the way you need them to.

In Xero you can set defaults so currency is effortless and doesn’t require additional thinking – it just works.

Deciding on an accounting platform is about so much more than comparing features. The key is to deliver a comprehensive platform. While other players may add features, a tool such as multi-currency cannot be an after thought.

Given the complexities of managing multi-currency and the scenarios in which it is used, its implementation is a good test of the robustness of a global accounting platform.

Small businesses who transact in multiple currencies, or operate in multiple regions, can take advantage of a single platform that caters for their needs. Xero can easily transition with your business as you expand across the globe. Xero can also be your accounting solution if you’re already set-up in a far flung location.

Multi-currency is but one criteria to determine how ready an accounting solution is to address the needs of a global marketplace. Xero is here to help small businesses thrive – anytime, and regardless of where they happen to be. One world, one solution.

One comment

Carl
September 5, 2015 at 7.53 am

multi currency in Xero is great. Better than any desktop product on the market for sure.
I’ve seen it working with the multi currency payment app http://www.transfermateonline.com which allows you to make your payments direct from Xero much cheaper than. The bank. Great software

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